1. Select Committee on Trade and International Relations
Seda Annual Report 2010/11
Presentation to:
Select Committee on Trade and International Relations
H. Lupuwana, CEO
2 November 2011

2. Contents 1 Delegation details Acronyms
2010/2011 Management Report from the Auditor-General
2010/2011 Auditor-General Opinion
Performance Highlights
Performance Trends (key indicators)
Provincial Analysis

3. Contents 2 Statement of financial performance
Seda and Stp Vote 36 funding
Development Areas
Future plans
Funds leveraged from Provincial Partners
Co-location points
STP – involvement of Provincial Partners
CPPP – Involvement of Provincial Partners

4. Delegation Details 3 Name Designation Mr L Mngomezulu
Board Chairperson
Ms H Lupuwana
Chief Executive Officer
Ms M Hogendoorn
Chief Financial Officer
Mr K Slabbert
Chief Operations Officer
Mr R Alummoottil
Executive Manager: Seda Technology Programme
Mr L Njenge
Senior Manager: Strategy and Organisational Performance Management

5. Acronyms 4 CPPP Community Public Private Partnership
DM District Municipality
dti Department of Trade and Industry
IT Information Technology
LM Local Municipality
MTEF Medium Term Expenditure Framework
Seda Small Enterprise Development Agency
SMME Small Medium and Micro Enterprise
Stp Seda Technology Programme

6. 2010/2011 Management Report from the Auditor-General5
No matters reported that affect the Audit Opinion.
No exceptions were reported by the IT Auditors.
Management has addressed the majority of the issues that were raised in the prior year’s Management Report.
No matters reported under lack of Service Delivery.

7. 2010/2011 Auditor-General Opinion6
Unqualified Audit Opinion on Annual Financial Statements sustained for three consecutive years.
No emphasis of matter.
Unqualified Opinion expressed on Performance Information.
No non-compliance with laws and regulations.
No matters to report under Supply Chain Management.
No significant deficiencies in internal control.

8. Performance Highlights7
Service delivery achievements (target in brackets)
93% (80%) client satisfaction levels with quality of Seda services.
37% (35%) of assisted clients indicated an increase in turnover.
27% (25%) of assisted clients indicated an increase in number of people employed.
Payments worth R198 million facilitated by the SMME Payment Assistance Hotline.
TradePoint assisted in excess of 200 small businesses.

9. Performance Highlights8
Service delivery achievements (target in brackets)
1,479 (500) clients supported by the Seda Technology Programme (Stp).
893 (1,000) direct jobs created Stp.
26 (10) small businesses assisted with technology transfer support, a further 56 assessed and referred to other institutions.
129 (125) small businesses supported through conformity assessments and product testing.
Improvement in media reporting with a 194: 4 ratio (target 5:1).
Efficient financial management– 98.7% of approved funds utilised.

10. Performance Trends – Key Indicators9

11. Performance Trends – Key Indicators10
More focus on Impact

12. Provincial analysis 11
Conversion above targeted 40% i.e. 42% of new clients attracted to clients registered, and 47% of clients registered to clients working with

13. Statement of Financial Performance12
Revenue
2010/2011 (R mil)
2009/2010 (R mil)
MTEF funding
461.1
409.5
External earnings
23.0
61.3
Interest received
11.7
13.9
TOTAL REVENUE
495.8
484.7
TOTAL EXPENSES
(509.3)
(521.4)
DEFICIT FOR THE YEAR
(13.5)
(36.7)

14. Vote 36: Seda & Stp funding13
Vote 36: Seda & Stp funding
INCOME
FY 11/12
(R mil)
Year on year increase
FY 12/13
FY 13/14
FY 14/15
Seda – dti from MTEF budget
413,3
2.5%
423,6
5.5%
446,9
6.0%
473,8
Stp – dti from MTEF budget
110,0
2.7%
113,0
119,2
126,4
TOTAL
523,3
536,6
566,1
600,2

15. Development Areas 14
Ensuring that Seda has sufficient funding to service the 20% market and implement other key programmes.
Attracting and retaining key, skilled staff.
Skills levels of key staff especially in operations/service delivery.
More stringent criteria for SMME business development service provider selection and management.
Elevating the SMME agenda at a national and political level.

16. Future Plans 15
Strengthening of existing and creation of new partnerships.
Upscaling of the incubation programme and other key programmes.
Focused support in priority sectors.
Proactively identifying and working with small and medium enterprises (20% market).
Continued rural enterprise development support, focusing on large scale projects (Coops and CPPP).

17. Funds leveraged from Provincial Partners16
Funds leveraged from Provincial Partners
Funds committed
Funds received and service provision costs covered
Number of local and district municipalities and other institutions working with
Eastern Cape
R3,035,000
R1,600,000
5 institutions
Free State
R67,000
1 institution
Gauteng -
KwaZulu Natal
R1,392,042
R1,576,150
8 institutions
Limpopo
R736,998
R552,011
2 institutions
Mpumalanga
R2,000,000
Northern Cape
R1,161,820
9 institutions
North West
R74,000
Western Cape
R189,350
TOTAL
R8,466,860
R7,146,331

18. Co-location points 17 Province Number of Co-location Points
Eastern Cape 19
Free State
Gauteng
KwaZulu Natal 15
Limpopo 3
Mpumalanga 13
Northern Cape 8
North West
Western Cape
TOTAL 58

19. Seda Technology Programme18
Incubators
Provincial and local government involvement
Eastern Cape 6
ECDC and Alfred Nzo DM involved in Furniture Incubator, Nelson Mandela Bay Metro involved in Construction and ICT Incubator. Working with Alfred Nzo DM towards establishing a new Incubator in Mt Ayliff.
Free State 1
Incubator funded by Seda, no local and provincial government involvement .
Gauteng 8
City of Tshwane involved in Manufacturing and Automotive Incubators. Ekurhuleni Metro involved in Lepharo Incubator .
KwaZulu Natal
Umzinyathi DM involved in Construction as well as Agri-skills Incubator. eThekwini Metro involved in Furniture and Construction.
Limpopo 2
Provincial Agriculture department involved in bio-fuels incubator .
Mpumalanga 5
Stainless Steel Incubator has infrastructure support from Mpumalanga Economic Growth Agency .
Northern Cape
Talks with Sol Plaaitjie DM to establish an incubator.
North West
Invest Northwest and Bojanala West DM involved in Platinum Incubator.
Western Cape
Incubators funded by Seda, no local and provincial government involvement .
TOTAL 31

20. CPPP 19 Provincial and local government involvement Eastern Cape
Working with ECDC,ASGISA-EC, Amathole Development Agency, Intinga Development Agency and provincial government departments on establishing cooperatives.
Free State
A Cooperatives Forum comprising development institutions, provincial and local government has been established in the province. Seda working with members on developing and sustaining cooperatives.
Gauteng
Working with the City of Tshwane, Ekurhuleni Metro, Sedibeng DM, Randfontein LM and Westonaria LM on establishing cooperatives.
KwaZulu Natal
Working with Ithala Bank, TIKZN, Ezemvelo KZN Wildlife, uGu DM, uMzimkhulu LM and Ezinqoleni LM, provincial government departments on establishing cooperatives.
Limpopo
Working with Vhembe DM, Mopani DM, and Greater Tzaneen Economic Development Agency on establishing cooperatives.
Mpumalanga
Working with provincial Dept of Economic Development Environment and Tourism, provincial Dept of Public Works and Mpumalanga Economic Growth Agency on establishing cooperatives.
Northern Cape
Working with Siyanda DM, Namakwa DM and Pixley ka Seme DM, as well as provincial Department of Agriculture on establishing cooperatives .
North West
Working with Ditsobotla LM, Lekwe Teemane LM and Ramotshere Moiloa LM on establishing cooperatives.
Western Cape
A Cooperatives Forum comprising development institutions, provincial and local government has been established in the province. Seda working with members on developing and sustaining cooperatives. Discussions with the Theewaterskloof LM on establishing recycling cooperatives.

21. 20
Thank you